Correlation Between Actinogen Medical and Prime Financial
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Prime Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Actinogen Medical and Prime Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Prime Financial Group, you can compare the effects of market volatilities on Actinogen Medical and Prime Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Actinogen Medical with a short position of Prime Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Prime Financial.
Diversification Opportunities for Actinogen Medical and Prime Financial
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Actinogen and Prime is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Prime Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Financial Group and Actinogen Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Actinogen Medical are associated (or correlated) with Prime Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Financial Group has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Prime Financial go up and down completely randomly.
Pair Corralation between Actinogen Medical and Prime Financial
Assuming the 90 days trading horizon Actinogen Medical is expected to under-perform the Prime Financial. In addition to that, Actinogen Medical is 2.05 times more volatile than Prime Financial Group. It trades about -0.01 of its total potential returns per unit of risk. Prime Financial Group is currently generating about 0.01 per unit of volatility. If you would invest 23.00 in Prime Financial Group on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Prime Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Prime Financial Group
Performance |
| Timeline |
| Actinogen Medical |
| Prime Financial Group |
Actinogen Medical and Prime Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Prime Financial
The main advantage of trading using opposite Actinogen Medical and Prime Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Prime Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Prime Financial will offset losses from the drop in Prime Financial's long position.| Actinogen Medical vs. Westpac Banking | Actinogen Medical vs. Champion Iron | Actinogen Medical vs. Ridley | Actinogen Medical vs. Peel Mining |
| Prime Financial vs. Champion Iron | Prime Financial vs. Ridley | Prime Financial vs. Peel Mining | Prime Financial vs. Australian Dairy Farms |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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